What is a notice of intent to disclose?

What the notice says

The letter is usually headed something like "Intent to disclose business tax debt information". It sets out:

• That your business currently meets the criteria for disclosure.
• The debt amount and which of your tax accounts it relates to.
• What information would be reported: identifying details for the business and the amount of overdue debt.
• The steps that would stop disclosure, and that you have 28 days.

It arrives by post or through myGov or Online services for business, depending on your communication preferences. If your accountant or tax agent is linked to your account they may receive a copy too, and it is worth checking with them if you are not sure whether one has been sent.

Why you got it

The notice is not issued at random or as a first reminder. It usually follows a run of unanswered contact: statements, reminder letters, calls or texts, and often a referral to the ATO's external debt collector. From the ATO's side it is a sign that a large debt has been left unmanaged for months.

It can also arrive when a plan has fallen over. A business that had a payment plan, defaulted, and did not re-engage stops counting as effectively engaging, and if the overdue amount is $100,000 or more the notice can follow. The same escalation tends to bring a firmer action warning at the same time, so read everything the ATO has sent, not just this letter.

What to do in the 28 days

Any one of these, done and recorded before the 28 days end, takes you outside the criteria:

1. Set up a payment plan with the ATO and make the first payment. This is the most common fix and it does not have to clear the debt quickly, it has to be realistic and kept.
2. Pay enough to bring the overdue amount under $100,000.
3. Lodge an objection if you genuinely dispute the amount, or apply for release if you are an individual or sole trader in serious hardship.
4. Complain to the Tax Ombudsman about the proposed disclosure. This pauses it while the complaint is open.

A phone call on its own does not count. The ATO needs an arrangement or application it can see on the account. If the debt is large and the numbers are tight, how to negotiate a payment plan and getting matched with a specialist are the two places to start.

What happens if nothing changes

After the 28 days, the ATO can include the business in its weekly data file to registered bureaus such as CreditorWatch, Equifax and Experian. The entry then sits on the business's commercial credit file and is visible to suppliers and lenders who subscribe.

Even then it is not permanent. Entering a plan or paying the debt takes you outside the criteria, and the entry is removed at the next update. Read how long an ATO default stays on a credit file for the detail.

What to do next

1. Find the date on the notice and count 28 days forward. That is your deadline.
2. Check your ATO account for the exact overdue amount and any unlodged returns that need to go in first.
3. Set up a payment plan, lodge an objection or make a payment that gets you under $100,000, and confirm it shows on your account.

More questions: 12 Debt collectors and credit reporting questions answered · Full guide: ATO debt collectors